Hyderabad Metro Rail phase II: Telangana govt sends SOS to Centre for final approval

The expansion of Metro Rail has been cleared by the central government in principle. However, the red tape has led to a delay, which has made the Telangana government restive

By -  Newsmeter Network
Published on : 21 Jan 2026 9:50 AM IST

Hyderabad Metro Rail phase II: Telangana govt sends SOS to Centre for final approval

Hyderabad: Hyderabad Metro Rail phase II has turned into a high-stakes battle between the Telangana government and the Centre.

The bone of contention is the joint committee. Union Coal Minister G Kishan Reddy has said that the Centre has not received any names for the committee, while the Telangana govt has claimed that the list of officals has been forwarded to the Union Ministry of Housing and Urban Affairs.

Both Telangana Chief Minister Revanth Reddy and Union Coal Minister Kishan Reddy have now issued letters.

The expansion of Metro Rail has been cleared by the central government in principle. However, the red tape has led to a delay, which has made the Telangana government restive.

Chief Minister Revanth Reddy is determined to ensure that Phase-II—stretching 116 km across key corridors like the Airport route and the "Fourth City"—doesn't remain on paper.

In a recent exchange, the CM responded to Union Minister G Kishan Reddy, who had raised concerns about delays in nominating officials for a Joint Coordination Committee.

The Chief Minister clarified that the names had already been communicated to the Union Ministry of Housing and Urban Affairs (MoHUA). By urging Kishan Reddy to "use his good offices," the CM has thrown the ball back into the Centre’s court. He has requested to expedite the process for final approval for a project.

Background of the tussle

The approval process for Phase-II is a complex puzzle involving three major players: the Telangana Government, the Central Government, and the current operator, L&T.

Under CM Revanth Reddy, the Telangana government made a historic decision to take over Phase-I from L&T. Why? L&T had expressed financial strain and a desire to exit the equity partnership. To ensure a seamless "one-city, one-metro" experience, the State decided to run the operations itself.

The Union Government (represented by Ministers Manohar Lal Khattar and G. Kishan Reddy) has given "in-principle" approval for Phase-II, but with a strict condition:

The "Phase-I First" Rule: The Centre insists that Telangana must first complete the formal financial and legal takeover of Phase-I from L&T before the Centre can formally sanction funds for Phase-II.

The Joint Committee: To oversee this massive transition, the Centre proposed a committee of four (two from the State, two from the Centre). This has been the recent point of contention regarding the "missing nominations."

In a historic cabinet meeting held at Medaram (January 2026), the State allocated ₹2,787 crore specifically for land acquisition for Phase-II.

The Partnership Model: The State is pushing for a 50:50 cost-sharing model with the Centre, similar to the Delhi and Bengaluru Metros, to ensure long-term sustainability.

Vision of Bharat Future City

Phase II isn't just an extension; it is the skeletal framework for the "Bharat Future City" vision. The proposed corridors include:

Nagole to Shamshabad Airport (The Purple Line)

MGBS to Chandrayangutta (Crucial connectivity for the Old City)

Raidurg to Kokapet Neopolis (Connecting the global IT and Financial Districts)

The Status Quo: The Telangana Government has done the legwork—finalizing DPRs, allocating land funds, and deciding to take over Phase-I. The ball is now in the Centre's court to finalize the Joint Committee and release the formal approval.

Timeline of the events:

Oct 16, 2025: State Cabinet Formal decision to take over Metro Phase-I from L&T to resolve the deadlock.

Nov/Dec 2025: CM Revanth Reddy meetings with Union Minister Manohar Lal Khattar to finalize the 50:50 JV model.

Dec 12, 2025: Telangana govt sends a formal letter nominating two officials for the Joint Coordination Committee.

Dec 29, 2025: Central Govt (MoHUA)Centre replies, not rejecting the names, but asking for specific details on the state’s internal committee and takeover status.

Jan 15, 2026: Union minister Kishan Reddy writes to the CM stating the Centre is still waiting for the nominations to move forward.

Jan 17, 2026: Telangana Govt State sends a second communication providing the clarifications requested on Dec 29.

Jan 20, 2026: CM Revanth Reddy writes a letter to Union Minister Kishan Reddy: "We sent the names on Dec 12 and clarified again on Jan 17. Please expedite the approval."

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